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Roadshow PresentationResults for the fourth quarter and full year 2018

Results for the fourth quarter and full year 2018 2

Cautionary statement'This presentation contains forward-looking statements. These forward-looking statements are usually accompanied by words such as 'believe', 'intend', 'anticipate', 'plan', 'expect' and similar expressions. Actual events may differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Neither A1 Telekom Austria Group nor any other person accepts any liability for any such forward-looking statements. A1 Telekom Austria Group will not update these forward-looking statements, whether due to changed factual circumstances, changes in assumptions or expectations. This presentation does not constitute a recommendation or invitation to purchase or sell securities of A1 Telekom Austria Group.‘

All figures are stated according to IAS 18 if not stated otherwise. To reflect the performance on an operational basis, the proforma figures present comparison figures for previous periods as if M&A transactions executed between the start of the comparison period and the end of the reporting period had already been fully consolidated in the relevant months of the comparison period. Alternative performance measures are used to describe the operational performance. Please therefore also refer to the financial information presented in the Consolidated Financial Statements, which do not contain proforma figures, as well as the reconciliation tables provided in the Earnings Release.

Operational andfinancial highlightsfor the full year 2018

Operational andfinancial highlightsfor the full year 2018


Smart network rollout continued:

Austria: 333k more high-speed ready households as part of NGA rollout in 2018

Next Generation Data Center in Austria launched in Q4 2018

Next phase of future-proof mobile networks preparation towards 5G

A1 brand successfully launched in Bulgaria and Croatia

Innovative products in the areas of entertainment and smart living as well as security solutions fitting A1 connectivity proposition

A1 Digital: customer wins confirm growing traction; further investments and intensified sales actions

Strong performance in Austria and most CEE countries led to growth of 1.8% in revenues (adjusted: 3.1%*) and of 1.6% in EBITDA, excl. restructuring (adjusted: 3.6%*)

Mobile contract customer base increase of 4.1% y-o-y due to ongoing shift from prepaid to contract and M2M, migrations to higher tariffs and strong demand for WiFi router

Increase of RGUs by 3.7% y-o-y due to strong BB and TV trends with ARPL growing in most markets

Steady demand for ICT solutions and complementary connectivity continues to benefit service revenues

Highlights FY 2018

* Adjusted basis excluding one-off and FX effects as well as restructuring charges


FY 2018 – Solid service revenue growth translated intostrong operative EBITDA increase

* Proforma figures include effects of M&A transactions executed between the start of the comparison period and the end of the reporting period.** Adjusted basis excluding one-off and FX effects as well as restructuring charges:

Revenue increase of 3.1% on an adjusted** basis with service revenue growth in all markets except for Slovenia.

EBITDA on an adjusted** basis increased by 3.6% driven by strong growth in Austria and most of the CEE segments; ~EUR 15 mn negative roaming impact on Group EBITDA in FY 2018 more than offset.

Net income declined due to amortization of brand values (EUR 198 mn in D&A in 2018; EUR 122 mn in 2017) and as the prior-year was positively impacted by a lower effective tax rate (income taxes of EUR 99.7 mn 2018 vs. EUR 3.0 mn 2017).

CAPEX higher due to investments in Austria (fiber roll-out, datacenter) as well as investments in CEE in late 2018.

• One-off effects: EUR +5.0 mn (2017: EUR +30.4 mn) in revenues; EUR +9.4 mn (2017: EUR +21.3 mn) in EBITDA• Restructuring charges: EUR 22.1 mn in FY 2018 versus positive EUR 18.2 mn in FY 2017• FX effects: negative EUR 30.7 mn and EUR 14.9 mn in revenues and EBITDA respectively in FY 2018

Group (in EUR million) FY 2018 FY 2017 % change

Total revenues (proforma*) 4,466.4 4,388.5 1.8%

EBITDA (proforma*) 1,380.6 1,398.9 -1.3%excl. restructuring 1,402.7 1,380.7 1.6%

Net Income (reported) 242.7 345.5 -29.7%

CAPEX (proforma*) 771.0 738.0 4.5%

6Results for the fourth quarter and full year 2018

FY 2018 – EBITDA benefits from service revenue growth in all areas and strong focus on sales execution

Non-operating effectsService revenues OOI Equipment margin OPEX

• Restructuring charges: negative EUR 22.1 mn in FY 2018 versus positive EUR 18.2 mn in FY 2017

EUR m

n

EBITDA 2017excl.

restructuring(proforma)

Mobile Fixed SolutionsConnectivity

OOI Subsidies Handsetvalulation

Opexsavings

Opexincrease

One-offs FX Roaming EBITDA 2018excl.

restructuring

1.380.71.402.7

7Results for the fourth quarter and full year 2018

2,029.32,054.4

2017 (inEUR mn)

Workforcerelated

Infra-structure

Content A1Digital

AdvertisingRebranding

Other Opexsavings

FXeffect

2018 (inEUR mn)

Ongoing cost efficiencies more than offset indirect costincreases*

Ongoing program ‘Sourcing 4 Success’ will target especially the following areas: Maintenance Customer Service Energy

Focus on process efficiency and process automation

Investments in IT-system simplifications

Savings from lower frequency fees in Croatia

Drive digital transformation forward: Customer provisioning Customer post-sales processes

OPEX savings in 2019 are expected to be at a similar level like in 2018

Savings initiatives 2019OPEX** development 2018

* indirect costs: costs which are not directly product- or sales-related, overhead costs** excl. interconnection, roaming, equipment and restructuring costs; proforma figures

Key financialdevelopments for thefourth quarter 2018

Key financialdevelopments for thefourth quarter 2018


Service revenue growth in all markets except for Slovenia (increase in Belarus excl. FX effects) with growth both in the fixed-line and the mobile business; solutions & connectivity revenues particularly high in Austria.

EBITDA excl. restructuring* showed a strong increase, especially driven by Austria and Bulgaria. CAPEX increase in Q4 2018 driven by higher investments in CEE, stemming mainly from satellite IRU in Bulgaria

and VULA agreement in Slovenia.

Q4 2018 in line with FY trends: Strong service revenues translated into EBITDA growth

* Restructuring charges: EUR 13.9 mn in Q4 2018 (positive effect of EUR 5.0 mn in Q4 2017)The combined effects from the one-offs and FX caused the levelling out on Group level

Reported ReportedGroup (in EUR million) Q4 2018 Q4 2017 % change

Total revenues 1,165.1 1,130.0 3.1%

EBITDA 293.0 288.3 1.6%excl. restructuring 306.8 283.3 8.3%

CAPEX 263.7 238.5 10.6%


694.9 676.2

214.1 197.1

Q4 18 Q4 17 Q4 18 Q4 17

16.1 15.5

31.1 30.5

Q4 18 Q4 17 Q4 18 Q4 17

High demand for mobile WiFi routers and sound development in high-value tariffs both benefit postpaid subscriber base (+1.2%) and ARPU development

Higher ARPL due to strong demand for higher bandwidth and TV options as well as price indexation

1.9% RGU decrease mainly driven by voice; broadband RGUs declined slightly year-on-year

Strong service revenue growth (+3.8%), driven by mobile & completion of large ICT corporate projects in Q4 2018

OPEX excl. restructuring remained stable. Lower interconnection, roaming costs and cost efficiencies (i.e. network engineering, maintenance) outweighed higher costs for leased lines and content

Subsidy per handset increased due to higher-value handsets but overall lower quantities

Restructuring charges increased due to accelerated program

Austria: Strong operational performance driven by sound service revenue growth and a better equipment margin

Financial performance

Operational dataARPU(in EUR)

Total revenues(in EUR mn)

EBITDA*(in EUR mn)

ARPL(in EUR)

Δ: +3.7%

Δ: +2.1%

Δ: +2.8%Δ: +8.6%

rep.: -0.9%

* excl. restructuring charges of EUR 13.9 mn in Q4 2018 and positive EUR 5.0 mn in Q4 2017


Slovenia Republic of Serbia Republic of Macedonia

Bulgaria Croatia Belarus

Δ: +18.2%

Δ: +0.4%Δ BYN: +2.3%

Δ: +21.1% Δ: +2.9%* Δ: +10.4%

EBITDA(proforma, in EUR mn)

Service revenue growth in CEE profits from solid trends in Bulgaria, Republic of Serbia and Republic of Macedonia

Highlights CEE

Bulgaria: Ongoing fixed-line service revenue growth mainly driven by the business

segment and TV Mobile: Solid trends in the business segment continued; mobile residential

service revenues also grew

Croatia: Service revenue growth of 4.1% due to high demand for mobile WiFi

routers and strong broadband & TV, profiting fixed-line revenues Increased equipment revenues due to promotions EBITDA declined as lower equipment margin, rebranding costs (no further

effect in 2019) and higher content costs were not offset by lower frequency usage fees and bad debt as well as higher service revenues

Belarus: Revenues in local currency benefited from rising equipment and fixed-line

revenues; lower mobile service revenues due to less data packages sold EBITDA increased as solid fixed-line trends and a better equipment margin

were able to offset lower mobile service revenues and cost increases FX-impact: EUR -3.5 mn on revenues and EUR -0.8 mn on EBITDA

Other segments: EBITDA in Slovenia profited from higher OOI in Q4 2018 and cost savings Both Serbia and Macedonia benefited from attractive tariff propositions

and strong demand for WiFi router

* EUR 3.8 mn positive effect in Q4 2017 in OOI in the Republic of Serbia

Δ: -2.3%

30.5 19.136.6

9.2 9.9 7.2


Stable free cash flow in FY 2018 as ...

… continuing strong cash flow from operations

… as well as lower interest paid due to bond repayments and the use of favorable refinancing

offset

… higher CAPEX paid due to higher investments in full year 2018 and outstanding cash-receipts from government grants for the subsidized fiber roll-out

FY 2018: Stable free cash flow as the strong operational performance and lower interest paid offset higher CAPEX paid

Working capital needs of EUR 31.4 mn (EUR 67.8 mn in FY 2017), driven by

EUR 73.3 mn increase in accounts receivable,

EUR 45.4 mn instalment plans, mitigated by

EUR 112.3 mn higher accounts payable

Other financial positions of EUR -149.4 mn(EUR -136.6 mn in FY 2017) stemming mainly from

EUR 95.6 mn payments for restructuring and

EUR 63.7 mn income taxes paid

(in EUR million) Q4 2018 Q4 2017 % change FY 2018 FY 2017 % change

Net cash flow from operating activities 314.1 264.7 18.7% 1,232.3 1,174.8 4.9%

Capital expenditures paid -212.9 -184.3 15.5% -771.5 -705.4 9.4%

Proceeds from sale of plant, property and equipment -2.5 3.3 -174.6% 7.5 15.1 -50.3%

Interest paid -40.7 -35.2 15.8% -84.2 -99.8 -15.6%

Free Cash Flow 58.0 48.6 19.4% 384.2 384.7 -0.1%

Focus PointsFocus Points

10.3% 10.2% 10.5% 11.1%

0

100

200

300

400

500

600

FY15 FY16 FY17 FY18Solutions Connectivity excl. One‐offs

CAGR +6%

*Excl. positive EUR 10.5 mn one-off in 2015 and positive EUR 10.6 mn one-off in 2017

Austria represents 90% of the Solutions & Connectivity revenues with growth in both areas Value proposition profits from convergence CEE markets recorded solid growth (+22% CAGR 2015-2018) with increasing demand A1 Group benefits from the ability to scale its solutions to customer size and needs

Unique combination of digital and traditional products

in % of total revenues

Results for the fourth quarter and full year 2018

Fully integrated ICT propositions benefit both solutions and connectivity revenue trends

DatacenterCloud servers, Housing

Analytics ServicesBig data, data analytics

SecurityContent security, VPN, IoT

security, hacking protection

ApplicationsMS 365, cloud messenger

CommunicationSwitching, video conference

VMSM2M, smart metering, IoT

ConnectivityMobile, MPLS, LAN

Ser

vice

rev

enue

sSol

utio

ns &

Con

nect

ivity

*

15

~98

% >

40 m

bps

~60

% >

40 m

bps

Broadband roll-out in Austria provides best technology-mixin line with customer demand

EUR 480 mn

~60%

40 Mbps

Hom

espa

ssed

(in

thsd

.) of households reached via pure fixed-line with at least 40 Mbps product

set as standard bandwidthfor gross adds

total fibre investments in 2015-2018

A1 Austria leverages best technology-mix, combining 4G/FTTx to provide so-called Internet@Home

products, meaning broadband products used at home

~98% of households can be reached via hybrid modem, which combines fixed-line and mobile technologies

Further growth potential as ~75% of existing customers have still products with a bandwidth of <40 Mbps

Ongoing focus on fiber city push and subsidized roll-out in rural areas in 2019

Future investments are already included in CAPEX guidance


0

1,000

2,000

3,000

4,000

5,000

YE 2014 YE 2015 YE 2016 YE 2017 YE 2018 YE 2018hybrid

< 20 mbps < 40 mbps < 50 mbps <100 mbps >100 mbps

16

Connect Plus program offers additional benefits to valuable FMC customers like additional data allowance, discounts, exclusive products and content

The approach optimizes ARPH (average revenue per household), reduces the churn rate, increases the upselling potential and ensures sustainable revenue growth


Austria: Further development of A1 customer base withthe connect PLUS proposition

Fully convergent household Internet@Home**

TV product

Speed upgrades

Churn rate* (all churn rates below 1%)

€€€€ARPH€

lowest<1/5

Mobile only

highest

€€

* HH = households** Internet@Home: pure fixed-line broadband, hybrid and mobile WiFi routers

n.a.

n.a.

~1/4 of HH

~2/3 of HH*

€€

standard

~1/5 of HH

~1/2 of HH

Outlook for thefull year 2019Outlook for thefull year 2019


A1 Telekom Austria Group outlook for the full year 2019

~+2%

EUR 0.21 / share

~ EUR 770 mn

Total revenues

CAPEX

Proposed dividend

February 12, 2019

-

EUR 750 mn*

Consensus 2019

Outlook based on reported numbers under IFRS 15 and pre-IFRS 16; assumed devaluation of BYN vs. EUR: ~5-10%

CAPEX: does not include investments in spectrum or acquisitions

Dividend: intended proposal to the Annual General Meetings 2019 and 2020 for the financial years 2018 and 2019

+1.1%

*CAPEX consensus excl. spectrum

Appendix 1All figures are stated according to IAS 18 on a reported basis

Appendix 1All figures are stated according to IAS 18 on a reported basis


IAS 18 – IFRS 15 comparison shows same growth dynamics in FY 2018 revenues and EBITDA in both accounting standards

* FY 2017 includes proforma figures.

Income Statement FY 2018 FY 2017* % change FY 2018 FY 2017* % change(in EUR mn) IAS 18 IAS 18 IAS 18 IFRS 15 IFRS 15 IFRS 15

Service revenues 3,828.2 3,780.9 1.3 3,680.8 3,626.8 1.5Equipment revenues 546.2 504.4 8.3 662.6 618.4 7.2Other Operating Income 91.9 103.2 -10.9 91.9 103.2 -10.9

Total Revenues 4,466.4 4,388.5 1.8 4,435.4 4,348.3 2.0

Cost of Equipment -626.9 -584.2 7.3 -627.9 -582.5 7.8Cost of Services -1,395.6 -1,396.6 -0.1 -1,395.6 -1,396.6 -0.1SG&A Expenses -1,049.3 -996.7 5.3 -1,007.0 -951.2 5.9Other Expenses -13.9 -12.1 14.9 -13.9 -12.1 14.9

Total Costs and Expenses -3,085.8 -2,989.6 3.2 -3,044.5 -2,942.4 3.5

EBITDA 1,380.6 1,398.9 -1.3 1,390.9 1,405.9 -1.1EBITDA excl. restructuring 1,402.7 1,380.7 1.6 1,413.0 1,387.7 1.8

% of Total Revenues 30.9% 31.9% 31.4% 32.3%Depreciation and Amortisation -956.5 -954.4 0.2 -956.5 -954.4 0.2EBIT 424.1 444.5 -4.6 434.4 451.5 -3.8% of Total Revenues 9.5% 10.1% 9.8% 10.4%Financial result -81.7 -95.7 -14.6 -91.9 -104.0 -11.7EBT 342.4 348.8 -1.9 342.5 347.5 -1.4Income Taxes -99.7 -3.1 n.m. -98.8 -0.4 n.m.Net Result 242.7 345.7 -29.8 243.7 347.1 -29.8


The leading regional communications player providing convergent telecommunication servicesas of December 31, 2018 (in ‘000)

Mobile market position #1Mobile subscribers: 5,364 (Q4 2017: 5,335)Fixed access lines: 2,048 (Q4 2017: 2,118)

AustriaMobile market position #2Mobile subscribers: 1,833 (Q4 2017: 1,773)Fixed access lines: 297 (Q4 2017: 297)

Croatia

Mobile market position #3Mobile subscribers: 2,195 (Q4 2017: 2,183)

Republic of SerbiaMobile market position #2Mobile subscribers: 697 (Q4 2017: 703)Fixed access lines: 74 (Q4 2017: 70)

Slovenia

Mobile market position: #1Mobile subscribers: 3,934 (Q4 2017: 3,977)Fixed access lines: 536 (Q4 2017: 531)

Mobile market position #1Mobile subscribers: 1,056 (Q4 2017: 1,072)Fixed access lines: 164 (Q4 2017: 149)

Mobile market position #2Mobile subscribers: 4,873 (Q4 2017: 4,864)Fixed access lines: 452 (Q4 2017: 306)

Belarus

Bulgaria

Republic of Macedonia


A1 Telekom Austria Group – Profit and Loss

(in EUR million) Q4 2018 Q4 2017 % change

Service Revenues 973.6 940.2 3.6%

Equipment Revenues 170.0 161.5 5.3%

Other operating income 21.5 28.2 -24.0%

Total Revenues 1,165.1 1,130.0 3.1%

Cost of Service -364.6 -365.6 0.3%

Cost of Equipment -197.4 -183.9 -7.3%

Selling, General & Administrative Expenses -303.8 -286.7 -6.0%

Others -6.3 -5.5 -15.0%

Total Costs and Expenses -872.1 -841.6 -3.6%

EBITDA 293.0 288.3 1.6%

% of Total Revenues 25.1% 25.5%

Depreciation and Amortisation -201.2 -308.4 34.8%

Impairment and Reversal of Impairment 0.0 0.0 n.a.

EBIT 91.7 -20.1 n.m.

% of Total Revenues 7.9% -1.8%

EBT (Earnings Before Income Taxes) 68.0 -42.3 n.m.

Net Result 43.5 -11.6 n.m.


A1 Telekom Austria Group – Total revenues & costs and expenses per segment

A1 Telekom Austria Group - Costs and Expenses SplitCosts and Expenses (in EUR million) Q4 2018 Q4 2017 % change

Austria 494.7 474.2 4.3%Bulgaria 85.7 86.3 -0.8%Croatia 94.0 87.3 7.7%Belarus 62.9 59.4 5.9%Slovenia 47.2 46.5 1.4%Republic of Serbia 57.1 56.6 0.8%Republic of Macedonia 22.9 22.0 4.2%Corporate & other, eliminations 7.6 9.3 -18.3%Total Operating Expenses 872.1 841.6 3.6%

A1 Telekom Austria Group - Total Revenue SplitTotal Revenues (in EUR million) Q4 2018 Q4 2017 % change

Austria 694.9 676.2 2.8%Bulgaria 116.2 112.1 3.6%Croatia 113.2 106.9 5.8%Belarus 99.5 95.9 3.8%Slovenia 56.4 54.1 4.2%Republic of Serbia 67.0 66.2 1.2%Republic of Macedonia 30.2 28.6 5.6%Corporate & other, eliminations -12.2 -10.1 -21.1%Total Revenues 1,165.1 1,130.0 3.1%


A1 Telekom Austria Group – Headcount development

FTE (Average Period) Q4 2018 Q4 2017 % change

Austria 8,062 8,263 -2.4%

International 10,329 10,377 -0.5%

Corporate 375 335 12.0%

A1 Telekom Austria Group 18,765 18,974 -1.1%

FTE (End of Period) Q4 2018 Q4 2017 % change

Austria 8,010 8,246 -2.9%

International 10,319 10,366 -0.5%

Corporate 376 345 8.9%

A1 Telekom Austria Group 18,705 18,957 -1.3%


A1 Telekom Austria Group – Capital expenditure split

Capital Expenditures (in EUR million) Q4 2018 Q4 2017 % change

Austria 135.0 131.3 2.8%

Bulgaria 35.6 25.9 37.8%

Croatia 31.7 31.8 -0.3%

Belarus 23.0 18.5 24.0%

Slovenia 16.4 11.6 41.5%

Republic of Serbia 16.1 11.8 36.3%

Republic of Macedonia 9.8 11.5 -15.1%

Corporate & other, eliminations -3.9 -4.0 1.1%

Total Capital Expenditures 263.7 238.5 10.6%

thereof Tangible 194.0 182.5 6.3%

thereof Intangible 69.7 55.9 24.6%


A1 Telekom Austria Group – Net debt per December 31, 2018

EUR 600 mn 5 years hybrid bond qualified as 100% equity under IFRS – called and redeemed at the first call date (1 February 2018)

Net Debt (in EUR million) 31 December 2018 31 December 2017 % change

Long-term Debt 2,536.8 2,533.6 0.1%

Short-term Borrowings 245.3 0.6 n.m.

Cash and Cash Equivalents and Short-term Investments -63.6 -202.4 68.6%

Net Debt of A1 Telekom Austria Group 2,718.4 2,331.8 16.6%


A1 Telekom Austria Group – Debt maturity profileas of December 31, 2018

EUR 2,782.0 mn short-and long-term borrowings as of 31 December 2018 Average cost of debt of 2.68% Cash and cash equivalents and short-term investments of EUR 63.6 mn Average term to maturity of 4.28 years

245.3

0.2

747.1 746.3

298.9

0.0 0.0

744.4

2019 2020 2021 2022 2023 2024 2025 2026


A1 Telekom Austria Group – Debt profileas of December 31, 2018

Lines of credit Undrawn committed credit lines

amounting to EUR 1,015 mn

Average term to maturity of 0.7 years

Ratings S&P: BBB (positive outlook)

Moody’s: Baa1 (stable outlook)

Overview debt instruments Fixed/floating mix

91%

9%

Bonds Loans

91%

9%

Fixed Floating


30.5 30.4 30.5 30.8 31.1

194.0 192.2 191.7 192.0 191.8

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

1,447.3 1,446.9 1,442.8 1,439.0 1,434.8

220.3 218.4 191.5 190.2 190.8

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Unbundled lines

3,390.4 3,378.7 3,362.7 3,334.3 3,327.7

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Segment Austria – Fixed-line key performance indicators

ARPL ARPL-relevant revenues

Broadband RGUs

Broadband RGUs/unbundles lines (in ‘000)

TV RGUs (in ‘000)

Total RGUs (in ‘000)

ARPL & ARPL-relevant revenues(in EUR, in EUR million)

297.1 302.0 305.2 308.3 313.0

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18


156.2 154.8 155.1 154.9 160.5

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

36.1

22.6 24.419.7

37.3

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

1.8 1.7

1.5 1.61.5

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

15.5 16.0 15.9 16.3 16.1

248.1254.6 252.9 258.3 256.6

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Segment Austria – Mobile key performance indicators

ARPU Service revenues

ARPU & Service revenues(in EUR, in EUR million)

Subsidies (incl. promotional deals)(in EUR million)

Mobile penetration(in %)

Churn rate(in %)


Market share mobile broadband(in %)

Segment Austria – Broadband market split

Market share fixed-line broadband(in %)

26.7 25.9

0.7 0.6

17.4 17.4

16.4 16.5

3.5 3.0

35.3 36.6

Q4 17 Q4 18

Mobile BroadbandOther Operators

Unbundled Lines

Cable

A1 Mobile Broadband

A1 Fixed Wholesale

A1 Fixed Retail33.1 32.2

38.6 34.9

22.1 25.5

4.2 4.6 2.0 2.8

Q4 17 Q4 18

A1 Hutchison T-MobileHofer Others

56.4 55.6

4.2 4.0

22.7 23.1

16.8 17.3

Q4 17 Q4 18

Others UPCTele2/UTA A1

Market share total broadband(in %)


59.9 60.5

23.1 22.2

3.3 3.5

13.7 13.9

Q4 17 Q4 18

Others

UPC

Tele2/UTA

A1

Segment Austria – Voice market split

Market share voice Minutes(in %)


12.1 12.212.5

12.8 12.8

19.3 19.519.9

20.4 20.6

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

485.1 488.1 496.6 499.7

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

507.5

1,005.0 1,005.1 1,014.7 1,017.6 1,029.0

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Segment Bulgaria – Fixed-line key performance indicators

Fixed Broadband RGUs (in ‘000)


TV RGUs (in ‘000)



434.8 435.6 440.1 442.2 448.3

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18


5.2

3.7 3.9

2.2

5.5

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

145.6142.5 143.6 145.5 142.8

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

2.3

1.5 1.4 1.4

2.0

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

5.5 5.4 5.6 5.8 5.6

65.8 64.6 66.670.4 67.3

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Segment Bulgaria – Mobile key performance indicators





Churn rate(in %)


29.9 30.4 30.3 30.3 29.9

26.8 26.9 26.8 26.6 26.5

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Segment Croatia – Fixed-line key performance indicators

211.0 213.9 217.0223.4

229.3

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

654.1 655.4 658.2 668.5 681.8

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18


TV RGUs (in ‘000)




250.0 249.2 249.1 250.5 254.0

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18


8.37.4 6.7 6.6

10.7

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

11.2 11.212.3

13.311.4

60.5 59.3 65.173.9

63.4

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Segment Croatia – Mobile key performance indicators

117.5 116.7119.5

124.5121.5

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

3.6

2.41.7 2.0

3.2

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18





Churn rate(in %)


Segment Belarus – Fixed-line key performance indicators


TV RGUs* (in ‘000)

Total RGUs* (in ‘000)

ARPL & ARPL-relevant revenues*(in EUR, in EUR million)

Fixed Broadband RGUs* (in ‘000)

5.9 5.9 5.6 5.5 5.6

5.5 5.4 6.4 6.9 7.0

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

212.0 213.9245.8 245.9 246.7

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

463.4 475.5

614.9 615.8 657.3

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

248.7 258.9

366.4 367.4

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

408.1

*Reported RGUs and ARPL in Belarus are affected by the acquisition of the fixed-line provider Vitebsk Garant, consolidated as of May 1, 2018.


-2.1-2.6 -2.9 -2.6

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

‐4.3

4.4 4.1 4.3 4.4 4.2

63.7

59.063.2 63.9

60.9

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Segment Belarus – Mobile key performance indicators

120.5 120.5 121.1 122.3 122.4

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

1.7

1.5 1.41.6

1.7

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18





Churn rate(in %)


34.936.6 35.8 35.2 35.4

7.4

7.77.6 7.6

7.7

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Segment Slovenia – Fixed-line key performance indicators

183.0

171.4176.9 178.1

182.1

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

56.554.2

57.2 58.1

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

60.2


TV RGUs (in ‘000)




70.4 70.6 71.3 71.9

73.7

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18


Segment Slovenia – Mobile key performance indicators

15.014.4

15.215.7

15.0

31.8 30.2 31.832.6

31.2

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

1.82.3

3.22.9

3.2

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

116.0117.5 117.9

119.1 119.6

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

1.81.6

1.51.3 1.3

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18



Subsidies(in EUR million)


Churn rate(in %)


5.7 5.56.2 6.4 6.3

37.2 36.140.1

42.1 41.4

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

10.68.7

7.6

9.910.9

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Segment Serbia – Mobile key performance indicators

3.4

3.23.1 3.1

3.2

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

128.6 127.4 128.1131.0 132.3

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18





Churn rate(in %)


12.111.7 11.7 11.6

11.4

5.3 5.3 5.4 5.5 5.5

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Segment Macedonia – Fixed-line key performance indicators

122.9 123.5 124.4 126.4 128.8

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18


TV RGUs (in ‘000)



340.7 348.6 355.6367.8

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

383.1


114.6118.7 121.6 125.5

131.6

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18


Segment Macedonia – Mobile key performance indicators

6.1 6.36.7 6.8

6.5

19.9 20.121.3

22.2

20.7

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

108.1105.4 105.0

108.4

104.1

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

2.9

1.7 1.71.2

2.6

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

4.2

3.2 3.1 3.1

4.0

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18





Churn rate(in %)

Appendix 2 –Regulatory topicsAppendix 2 –Regulatory topics


Jul2015

Jan2016

Jul2016

Jan2017

Jul2017

Jan2018

Austria (EUR) 0.008049 0.008049 0.008049 0.008049 0.008049 0.008049

Bulgaria (BGN) 0.019 0.019 0.019 0.014 0.014 0.014

Croatia (HRK)* 0.063 0.063 0.063 0.063 0.047 0.047

Belarus (BYN)** MTS 0.025/0.0125ВеST 0.018/0.009

MTS 0.025/0.0125ВеST 0.018/0.009

MTS 0.025/0.0125ВеST 0.018/0.009

MTS 0.025/0.0125ВеST 0.018/0.009

MTS 0.025/0.0125ВеST 0.018/0.009

MTS 0.025/0.0125ВеST 0.018/0.009

Slovenia (EUR) 0.0114 0.0114 0.0114 0.0114 0.0114 0.0114

Serbia (RSD) 3.43 3.43 2.75 2.07 2.07 1.43

Macedonia (MKD)*** 0.90 0.90 0.90 0.63 0.63 0.63

* National and International EU/EEA MTRs stated as regulated. International MTRs differ between EU/EEA and non-EU/EEA originating country. Non-EU/EEA MTR for Croatia: HRK 1.73/min -> HRK 2.00/min in Apr 2016** Belarus values: prime time/downtime. MTS: Mobile TeleSystems; BeST: Belarus Telecommunications Network*** NRA Regulated asymmetric MTR for FULL MVNO (Lycamobile) from 01.05.2018 to 30.04.2019 at level of 1.5 MKD

Glide Path of Mobile Termination RatesCurrently no further reductions expected


Expected Comments

Austria2019 (3400-3800 MHz)2020 (700, 1500, 2100 MHz)2020 (1500, 2300 MHz)

3400–3800 MHz auction in February 2019.700/1500/2100 MHz auction planned for Q1/2020, consultation up & running

Bulgaria 2019 (1800, 2100, 2600 MHz)2020 (800, 2600, 3400-3800 MHz)

Availability of spectrum in 800 MHz is dependent on the release of frequencies used by military.

Croatia 2019 (2100, 2600 MHz)2021 (700 MHz)

2100 MHz auction opened in December 2018, official decision till 15 February 20192600 MHz allocation in Q1 2019

Belarus 2019 (2100 MHz)2019 (700 MHz)

Slovenia2019 (700 MHz)2019 (1400, 2300, 3400-3800 MHz, 2100 MHz)

700 MHz: Subject to international coordination of clearing that band.

Republic of Serbia 2020 (700, 2600, 3500 MHz)

Republic of Macedonia

2019 (2100 MHz)2020 (700 MHz)2022 (2100 MHz)2020 (3500 MHz)

Assignment of 2x15 MHz License in 2100 MHz band expected in Q1 2019.

* Please note that this a list of expected spectrum awards procedures. Whether Telekom Austria Group is planning and sees a need to participate and acquire spectrum in the above-mentioned procedures the Group is not permitted to comment on.

Upcoming spectrum tenders/prolongations/assignments*


RETAIL (in EURc) July 2014 April 30, 2016 June 15, 2017

Data (per MB) 20 domestic tariff + 5* domestic tariff

Voice-calls made(per minute) 19 domestic tariff + 5* domestic tariff

Voice-calls received(per minute) 5 weighted average MTR 0

SMS (per SMS) 6 domestic tariff + 2* domestic tariff

WHOLESALE (in EURc) July 2014 April 30, 2016 June 15, 2017 January 1, 2018 January 1, 2019

Data (per MB) 5 5 0.77 0.6 0.45

Voice (per minute) 5 5 3.2 3.2 3.2

SMS (per SMS) 2 2 1 1 1

EU roaming price regulation

* Sum of the domestic retail price and any surcharge applied for regulated roaming calls made, regulated roaming SMS messages sent or regulated data roaming services shall not exceed EUR 0.19 per minute, EUR 0.06 per SMS message and EUR 0.20 per megabyte used. Any surcharge applied for calls received shall not exceed the weighted average of maximum mobile termination rates across the Union.

Appendix 3 –Personnel restructuringin Austria

Appendix 3 –Personnel restructuringin Austria


Full Year Overview – Restructuring charges and provision vs. FTE

FTEs addressed

Provisioned FTEs

Overview restructuring charges(in EUR million)

Overview restructuring provision****(in EUR million)

2013 2014 2015 2016 2017 2018Transfer to government 22 52 49 6 3 0Social plans 409 199 270 269 31 241Staff released from work 0 0 0 0 0 0Total 431 251 319 275 34 241

810.0 809.5 719.7 629.3513.2 443.6

2013 2014 2015 2016 2017 2018

2013 2014 2015 2016 2017 2018Transfer to government 330 242 205 193 176 159Social plans 1,315 1,460 1,661 1,821 1,707 1,748Staff released from work 410 350 253 200 172 116Total 2,055 2,052 2,119 2,214 2,055 2,023

* Including EUR 15.0 mn due to the judgment of the European Court of Justice from November 11, 2014 regarding the remuneration and legal rights of civil servants (‘Vorrückungsstichtag’)** Restructuring expenses include a positive one-off effect in the amount of EUR 21.6 mn in Q4 2015 stemming from a settlement.

*** EUR -30.7 mn in restructuring charges in total in Q3 (EUR -29.0 mn) and Q4 2016 (EUR -1.7 mn) stemming from a revaluation of the restructuring provision due to changed underlying parameters**** Including liabilities for transfer of civil servants to government bodies since 2010

2013 2014 2015 2016 2017 2018FTE reduction 149.0 86.4* 69.5** 95.0 9.1 70.1Servicekom contribution -103.8 -39.4 -72.0 -96.9*** -27.3 -47.1Interest rate adjustments 0.0 42.6 2.9 9.2 0.0 -0.9Total 45.2 89.6 0.4 7.2 -18.2 22.1


Overview – Cash flow impact of restructuring

Total CF impact comprises old and new programs

Expected CF impact for 2019 of ~ EUR 95 mn

Cash flow impact(in EUR million) 2013 108.0

2014 107.12015 101.92016 105.52017 102.4

Q1 2018 24.3Q2 2018 23.5Q3 2018 23.8Q4 2018 24.0

FY 2018 95.6

Restructuring charges of ~EUR 80 mn

expected for the next few years addressing

civil servants

Target: decrease workforce costs by ~2%

net in Austria

Restructuring outlook 2019fRestructuring cash flow impact

Appendix 4 –Corporate sustainabilityAppendix 4 –Corporate sustainability


Alignment with core business and materiality analysis define sustainability strategy


Key figures – Corporate Sustainability

Environment 2018Total CO2 emissions (Scope 1+2 market-based in tonnes) 244.313Energy efficiency index (in Mwh/terabyte) 0,18Paper consumption (in kg) 1.127.925Collected old mobile phones (in pcs) 80.386

Employees 2018Share of female employees (in %) 40Share of female executives (in %) 35

Society 2018Participantions in trainings on media literacy 30.084

Selected group-wide KPIs Ratings

Memberships

Classification: B

Indices

Classification: B-